MACD, EMA, RSI, and ADX Rules with ATR-Based Exits

Summary

This strategy combines momentum, trend, and trend-strength filters to generate long and short entries. A MACD crossover sets the entry direction, while price relative to a 200-period EMA and RSI above or below 50 must agree; ADX must also exceed its threshold. The document lists default indicator settings and describes stop and target levels based on 1.5 times ATR, with a configurable risk-reward ratio.

The material gives rules and Pine Script source, plus a BTC-USDT futures backtest configuration covering roughly one year on a three-hour interval. It reports no performance results, so the configuration alone does not establish profitability. The notes flag lag, noise on short intervals, parameter overfitting, trading costs, and repeated stops in sharp volatility. The source calculates exits from the signal bar's close and submits them with entries, so the described adaptive risk controls should be checked against actual platform execution and backtest behavior before drawing conclusions.

Key ideas

• MACD crossovers trigger entries only when price, RSI, and ADX filters align.
• The 200-period EMA acts as a broad direction filter for long and short trades.
• ATR sets stop distance, and a risk-reward parameter determines target distance.
• Multiple confirming indicators can reduce some weak signals but may delay entries.
• The published settings do not include performance evidence, and costs or overfitting may affect results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.